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The importance of cultural differences in business
Cultural dimensions in international business
Proposal on influence of culture in international business
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The distributive and integrative strategies of power strategy will be discussed in this section. They are influenced by power and can easily indicated by the power distance of Hofstede (1980). In the following section, the effectiveness of these strategies will be evaluated at different cultures. Besides, interaction of different cultures for these two power strategies will also be discussed with recommendations.
Based on the literature, distributive strategy is a power strategy that focuses on individual, not joint, gains at the expense of the other and the size of the pie is fixed (Adair, et al., 2001; Pruitt, 1983; Pruitt, 1981). It is a normative strategy for high power distance, collectivistic and hierarchical culture, such as Turkey
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Japan is a strong hierarchical country with a high power distance culture as the role and responsibility of leader and subordinate are clearly defined (March, 1990). Brett and Okumura (1998) illustrated that during their joint venture negotiation between the Japanese and American, Japanese negotiators were more likely to discuss how powerful their company was and how advantageous their negotiating position was by emphasizing more on position and status to establish the power differences. Besides, Sullivan and Peterson (1982) stated that distributive strategy may foster trust to reduce behavioral uncertainty because the Japanese is used to be guided with the collectivism value, which is the social norms that are framed by the society’s power and hierarchy (Smith, 1991; Lefebvre and Lefebvre, 1986). This is aligned with their national culture which is collectivism and uncertainty avoidance (Hofstede, 1980). Hence, distributive strategy is effective in a hierarchy or high power distance …show more content…
(1998a) and Priutt, (1981) argue that effective negotiation is still can achieve if sufficient information can be collected through the table regardless of differences in power strategies as the power strategies have no direct relationship with joint gains. This is shown when it reported that American and Japanese negotiators have maximised the joint gain. The American negotiators use a lot of direct information exchange and asked numerous questions for open information exchange to identify trade-offs while the Japanese negotiators use indirect information exchange and persuasion with amounts of questions and general information exchange to infer the priority information necessary for trade-offs from the offers (Adair et al., 2004).
Rathus (1973) explained this phenomenon with the element of assertiveness, the ability to express and advocate one’s own needs, interests, and position. By applying Canada and China (Ma and Jagger, 2005), Ma and Jagger (2010) shows that assertiveness is significantly positive correlated with negotiation outcome regardless of the national cultures. Larger share pie can be achieved as they clearly understand that what they want (Mnookin et al.,
At this point, with an understanding of what power is, what it means, how it is created and the various means through which it is expressed, one can begin to conceptualise how it is that power functions within a given society. Symbolic, cultural, social and economic capital distribute and perpetuate power within a society, through a cycle of transformation whereby these capital resources can be interchanged and manipulated to the advantage of individuals who have
Almost every conflict situation consists of one party having more power than the other. When the power differential is significant, this usually has a major effect on both the matter and process of the dispute. In order for the outcome of the conflict to be fair, both parties must be relatively equal when it comes to power if resolution of the conflict is to be fair. If one side is far more powerful than another, they are more likely to impose their solution on the weaker party, who in turn will be forced to acquiesce, because they have no other choice.
There are many tactics that both sides can and do use to try and get the other side to yield first, when negotiations are under way. Uni...
Lewicki, J. R., Barry, B., & Saunders, M. D. (2006). Negotiation: Readings, Exercises and Cases (5th ed.). New York: McGraw Hill.
Negotiating styles are grouped into five types; Competing, Collaborating, Comprising, Avoidance, and Accommodating (Colburn, 2010). Even though it is possible to exhibit different parts of the five types of negation styles in different situations, can see that my tendencies seem to default to, Compromise and Accommodating. In reviewing the course work and reviewing my answers for Questionnaire 1 and 5, I find that the data reflects the same assumption. The accommodating profile is one where relationship perseveration is everything and giving what the other side wants is the route to winning people over. Accommodators are well liked by their colleagues and opposite party negotiators (Colburn, 2010). When analyzing my accommodating tenancy in negations, I find often it is easier to give into the demands when they are within a reasonable range. I often consider it the part of providing a high level of customer service. It has been my experience that continued delaying and not coming to an agreement in a topic will only shorten the window in which you will have to meet the request since. The cons to this style are by accommodating highly competitive styles the accommodator can give up to much ground in the process. “Giving away value too easily too early can signal to your negotiation counterpart that you've very deep pockets, and your gift is just a taster of bigger and better gifts to come”. The other negations type I default to is compromising. Compromising “often involves splitting the difference; usually resulting in an end position of about half way between both parties’ opening positions” (Colburn, 2010). In the absence of a good rationale or balanced exchanged concessions, half way betwee...
In general, it was stated in the refined face-negotiation theory that people from small power distance cultures would apply verbally direct and aggressive facework strategies (from the part of supervisors) and defensive strategies (from the part of subordinates). On the other hand, those from large power distance cultures would tend to use indirect strategy and third-party (for the boss) and obliging, respectful and apologizing strategies (for subordinates). As to face-concern, the patterns of relationship were the following: in small power distance cultures people were supposed to be self-face concerned, while people in high power distance cultures – other- and mutual-face
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
The power distance in Singapore is 74 where in Canada it is 39, power distance shows the equality of people in society or culture and the distribution of power (Hofstede Centre, 2016). In Singapore, the distribution of power is not equal everyone is not treated same but in Canada the power is mostly distributed equally. Another metrics in the model is individualism vs collectivism, from the graph above we can see the Singapore is more in collectivism whereas Canada is more in individualism (Hofstede Centre, 2016). Uncertainty avoidance affects a human behavior or a culture in large hugely. In uncertainty avoidance Singapore’s score is 8. In Singapore people abide too many rules not because they have need for structure but because of high Power distance (Hofstede Centre, 2016).
Fredric William Swierczek (2006) ‘Dimensions of Success in International Business Negotiations’ Journal of Intercultural Communication 11. Available from < http://www.immi.se/intercultural/nr11/numprasertchai.htm > [ 1 April 2014]
The first dimension, power distance index (PDI), refers to the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. In a society, an individual exhibiting a high degree of power distance accept hierarchies where everyone has a place without the need for justification. Societies with low power distance however, seek the equal distribution of power. In organization
The first national culture dimension to be identified is the measurement of power distance. This can be defined as the degree of inequality among people built upon what the population of that country accepts as normal. In countries with high power distance like China, individuals are more likely to accept differences in authority or inequality. Management are inclined to be dictatorial, making autocratic and paternalistic decisions, with their subordinates remaining faithful and obedient to them at all times. Often these societies or institutions possess business structures that are typified by close control over all operations. Organisation structures tend to be tall hierarchies with numerous levels within a formal setting. One of the reasons that can be identified for the acceptance of this type of authority in China is derived from thousands of years of political centralisation, which tends to result in a tradition of obedience.
According to Sledge, Miles, and Coppage (2008) power distance is “the degree to which control and influence are distributed unequally in society” (p. 1670). In a country with a high power distance employees would not feel comfortable voicing their opinions or disagreeing with their managers. Empowering employees would not work well because employees would be scared to take actions on their own. Employees would feel more comfortable with structure and strict procedures. In countries with low power distance managers could benefit from empowering employees. Employees are free to voice their opinions and develop and express new ideas or plans. Empowerment would motivate employees more in a country with low power distance.
There are various schools of strategy that have been vigorously debated on and after a consolidated effort; three schools of strategy were produced. They are the planning school, the positional school, and the resource based school of strategy (Ritson, 2013). All these strategies will be described with examples to buttress each.
Lewicki, R. J., Barry, B., & Saunders, D. M. (2007). Essentials of Negotiation. New York: McGraw-Hill/ Irwin.
Ya’akub, A. N. (2014). Negotiation. [PowerPoint slides]. Faculty of Social Sciences. University of Malaysia Sarawak.